A looming price increase should help convert reservations into sales, swiftly, while simultaneous rewarding early adopters. I wonder how much of an increase it is, and how long before it drops back?
Having worked in starting up new communities anything that makes the prospect more "real" tends to work as you described for one portion of the population but is usually offset by a spike in withdraws as well. Once people are faced with a final commitment point the end result seems to trend words a small decline. How much of that applies to the car market I do not know,
The early adopters are already "ahead" (pricing wise) on this decision for now, and most new car buyers seem to accept gradual depreciation as a fact of life. I also don't think Tesla could unveil a radical price cut like the iPhone scenario (~30%) without some serious red ink and damaging their price anchor against German luxury cars.
I'd assumed costs gradually decreasing over time - especially in the (currently) very expensive battery technology. I'd guess they'd want to pass these savings on to increase market share as quickly as possible, rather than try and squeeze some extra margin by maintaining prices.
WettowelReactor|13 years ago
sounds|13 years ago
If Tesla's costs to make each Model S go up, they can't avoid raising their prices.
It'd be nice if they were dropping prices, but I assume only a new model of Tesla would feature a lower price.
dane|13 years ago
I'd assumed costs gradually decreasing over time - especially in the (currently) very expensive battery technology. I'd guess they'd want to pass these savings on to increase market share as quickly as possible, rather than try and squeeze some extra margin by maintaining prices.